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Monday, January 8, 2007

Market Outlook

The feeling that 2007 may be the year of mid-small caps is catching on among Stock Mkt players. There was a total disconnect between the price rise of Index stocks and Mid-Small caps in the year 2006, where only the Index heavy weights and a select few pockets of the market saw action. Talking about near term outlook, I feel there may be a dip in the markets before the coming budget, so one must excercise caution. If at all a dip comes, it will be a good opportunity to accumulate undervalued mid-small caps. The index might be rangebound, while action will shift to underpriced mid-small caps. But for the full year, the outlook is bullish. It is my expectation that by the end of 2007, the index may scale 16000 plus levels. Cheers!Superstar

Dear Ashrith,Welcome to this blog. As you know, I have traded in Color chips ( from 10 to 30), Trigyn Tech (from 12 to 22) and VLS Finance (from 8 to 22) in the past also. But only *traded*, not invested as these have not been very stable shares. Nevertheless, I have not looked at them lately and will take a look at them again as soon as time permits.

Dear Pankaj,Yep, a correction of the indices was looking imminent that's why I had made the prediction. The Nifty closed at 3850.30 and if the fall is not arrested by tomorrow afternoon then the next support for Nifty is at 3693. But it would be prudent to cherry pick undervalued small/mid caps in this correction which are expected to post good third quarter results.

Dear Navin, I hope you are doing good. Can you please give some of your valuable comments on this union budget and global slow down in US and China. I know you always give ur timely view on each and every gems and it would be repeatition if i ask something related to specific stocks on your site except Madhaav marble. Is this real estate correction will effect the madhav marble too.

Dear Pankaj,Good to hear from you. I'm ok. Hope you are too. The current market crash has affected everybody who was invested in the markets but if you are holding good value stocks, I'm sure they will bounce back.

There were reports of some regulatory action being anticipated in Chinese stock market due to which the global funds took out their money. It had a ripple effect on the entire global markets.

A correction in our own Indian market was overdue so it used this event (and that of the uncertainty of the budget) to correct. Overheated stocks like the realty stocks took a hard knock. But talking specifically of Madhav Marbles, I don't think it has much downside left. It was already undervalued and now after the market fall, it looks even more attractive.

About Me

Hi there!
Thanks for visiting my blogspot. I live in India but consider myself a World Citizen. I have varied interests ranging from the Stock Markets, Astrology to Acting/Writing in Movies. Hope we can share our views and interact with each other through this website.
Cheers!
Navin

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Disclaimer

All information posted on this web site has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. Under no circumstances is this an offer to sell or a solicitation to buy securities discussed on this site. Past performance is no guarantee of future success. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. I have positions in some of the companies discussed. All data, information and opinions are subject to change without notice. (c) 2007 All Copyrights belong to Superstar